Sunday, June 4, 2017

Is McDonald’s Set Too Topple Pizza for Dinner?

How
many of you have kids and are considering ordering Dinner from McDonald’s now that they are offering
delivery at more than 2,000 stores in the US?
When your kids are asking What’s for dinner, would you elect to replace
that dinner pizza with McDonald’s once a month, twice a month or once a
week? McDonalds thinks so.

McDonald’s
ability to take the time testing delivery around the world and developed
systems, food, and service to understand the benefits, complications, and
outcomes will prove a key driver of incremental success.

Delivery
will drive continue unit level sales success. McDonald’s has with delivery
created a platform that will drive top line sales, bottom line profits while
garnering market share from other foodservice sectors all while edifying the
McDonald’s brand with relevance according to Tacoma, WA based Foodservice Solutions® team which calls this system
Build, Measure, Learn, and Repeat.

When
it comes to food delivery McDonald’s has taken its time in rolling out food
delivery in the United States but that does not mean that they have done lots
of food delivery. In fact it has been
widely reported that last year alone global food sales of food delivered by McDonald’s
restaurants reached $ 1 Billion and that’s before they ever delivered one meal
in the US.

Southeast Asia has been the primary testing grounds for McDonald’s
delivery including the following countries:

McDonalds is dynamic not
static and building sales in new non-traditional avenues of distribution
elevates consumer relevance with it target audience specifically younger
customers, late-night diners that want their food delivered.

McDonald’s CEO Steve
Easterbrook
stated “We see significant potential” in delivery….We’re encouraged by the
early results.” McDonald’s noted that delivery orders tend to come in the
evening or late night — so far, 60 percent of delivery orders come during those
periods.

Easterbrook believes that the ability to grow
dayparts with underutilized capacity via delivery is a perfect fit for the
company at this time. The team at Foodservice
Solutions® believes that there will be a three year ramp-up with
delivery at McDonald’s and at the end of three years McDonald’s will have
garnered a larger share of stomach. Did you hear that Pizza Hut, Papa John’s and Domino’s?

Our Grocerant Guru® believes catering office
breakfast and lunch events will drive market share gains, putting pressure on Starbucks, while dinner will garner
share from the Pizza sector. McDonald’s
recorded over $ 1 Billion in delivery worldwide in 2016. At McDonald’s delivery is an integrated
strategy not a one off tactic according to our Grocerant Guru® Steven Johnson.

The Grocerant niche
and fresh food sales today is all about time as our Grocerant Guru® reported back
in the day. Simply put; today time is the new currency that is the most
important in consumer buying decisions. McDonald’s has 14,000 locations in the U.S.,
and 75 percent of the population lives within three miles of a McDonald’s.

McDonald’s
CFO Kevin Ozan said at a recent Bernstein conference “I say this from
experience as one who orders delivery a lot, one of the most important things
in speed”. He said most people could get their food less than 30 minutes after
order from McDonald’s. “You never get that. It’s usually an hour, whether
you’re ordering pizza or Chinese food or anything else.” We might say
locations, locations, locations!

Remember
Build,
Measure, Learn, and Repeat well McDonald’s did learn with over $1
Billion in Delivery sales in 2016 and over the years they have learned a lot
about food quality, service, food sales and delivery.Is your brand looking beyond traditional
points of distribution? Is your brand prepared to target another sector of
foodservice?Is your brand building
customer counts or capitulating customers?

Leaders lead and McDonalds understands that the customer is
dynamic not static and the customer is on the move. Foodservice Solutions® Grocerant
Guru® Steven Johnson stated “McDonalds stop practicing Brand
Protectionism long ago and that is one major key reason they have exceed
globally and will continue. McDonalds understands that you cannot do what
you have always done and stay relevant.”